Alumina Limited is a leading Australian company listed on the Australian Stock Exchange (ASX) and the New York Stock Exchange (NYSE). We invest worldwide in bauxite mining, alumina refining and selected aluminium smelting operations through our 40 per cent ownership of Alcoa World Alumina and Chemicals (AWAC), the world’s largest alumina business. Our partner, Alcoa, owns the remaining 60 per cent of AWAC, and is the manager. The AWAC joint venture was formed in 1994 and our partnership with Alcoa dates back to 1961.
Alcoa World Alumina and Chemicals (AWAC) is the world’s largest producer of alumina and is a global joint venture between Alumina Limited and Alcoa. Alumina owns 40 per cent of AWAC, our joint venturer Alcoa is the enterprise manager and owns 60 per cent. AWAC global interests include 8 alumina refineries, 8 bauxite mines and 2 aluminium smelters.
Alumina Limited commenced as a standalone entity on 11 December 2002 when WMC Limited’s alumina assets were demerged from its nickel, copper and fertilizer businesses.
The origins of the Alcoa Worldwide Alumina and Chemicals (AWAC) partnership between Alcoa and WMC Limited (now Alumina Limited) began in the early 1960’s following the exploration and discovery of bauxite deposits and other resources by WMC Limited and two other Australian companies. The Aluminium Company of America (Alcoa) was invited to join the project to provide technology, aluminium expertise and finance. The venture formed Alcoa of Australia Ltd, an integrated aluminium company, in 1961 with WMC Limited holding a 20% interest and Alcoa a 51% interest.
Over the following years the venture grew to include refineries and smelter interests as the partners sought to take opportunities to expand the business. By 1990, WMC Limited’s interests in Alcoa of Australia had grown to 48.25% through acquiring the minority interests of other participants, other than Alcoa.
In July 1994, WMC decided to expand this interest as a worldwide bauxite, alumina and alumina-based chemicals enterprise.
WMC Limited and Alcoa combined their respective bauxite, alumina and alumina-based chemicals businesses and investments and some selected smelting operations to create Alcoa World Alumina and Chemicals (AWAC) in January 1995.
Alumina Limited is listed on the Australian Stock Exchange (ASX) and the New York Stock Exchange NYSE). Alumina’s issuer code or ticker code is AWC. On the NYSE Alumina’s stock is traded as American Depositary Receipts (ADRs). Each ADR is the equivalent of 4 shares in Alumina Limited. Alumina’s stock commenced trading on 11 December 2002.
Alumina Limited does have a Dividend Reinvestment Plan (DRP) however it is currently suspended. The Plan was suspended in 1998. There are no immediate plans to reinstate the DRP.
Alumina Limited’s financial year concludes on 31 December. Full Year results are generally released around the first week in February. Half Year results are generally released in the first week in August.
Alumina Limited’s strategy is to participate solely within AWAC in bauxite mining, alumina refining and selected aluminium smelting operations globally. AWAC is the world’s largest alumina producer, with scope to expand capacity at its lowest cost refineries. Profitable expansion to supply forecast growth in global aluminium market demand means that AWAC provides the greatest potential to meet Alumina Limited’s objectives of providing long-term capital growth and substantial dividends to shareholders.
At Alumina Limited we have core values and supporting principles that guide the way we do things at Alumina. Those values underpin our policies, business practices, standards and corporate governance. The values have been adopted by the directors, management and staff of Alumina Limited and translate into our Code of Conduct.
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Since 31 December 2005 Alumina Limited’s financial statements have been prepared in accordance with Australian equivalents to International Financial Reporting Standards (A-IFRS), other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001. Until to 31 December 2004 Alumina Limited’s financial statements had been prepared in accordance with previous Australian Generally Accepted Accounting Principles.
Alumina Limited intends, subject to business conditions, to at least maintain dividends to Alumina shareholders at current levels through the current period of substantial growth. Dividends are paid twice a year. An interim dividend is paid in September or October and the final dividend is paid in March or April. During the 12 month period January 1, 2005 to December 31, 2005, Alumina paid cash dividends to its shareholders of A$0.20.
Alumina has averaged 19.8 per cent return on equity over the five years 2001 to 2005.